Independent Bank Group, Inc. Reports Second Quarter Financial Results and Declares Quarterly Dividend
The Company also announced that its Board of Directors declared a quarterly cash dividend of
Highlights
-
Resilient credit quality with nonperforming assets of
0.32% of total assets and net recoveries of0.03% annualized for the quarter -
Decreased loan to deposit ratio to
95.1% at quarter-end compared to99.8% at prior quarter-end -
Continued expense discipline with total adjusted (non-GAAP) noninterest expense of
$84.5 million $85.7 million -
Strong liquidity, with cash and available for sale securities representing approximately
13.6% of assets at June 30, 2023, and with the ability to access considerable sources of contingent liquidity -
Capital remains strong, with ratios well above the standards to be considered well-capitalized under regulatory requirements, with an estimated total capital ratio of
11.95% , leverage ratio of8.92% , and (non-GAAP) tangible common equity (TCE) ratio of7.37%
“During the second quarter, we were pleased to maintain a strong foundation of resilient asset quality and a healthy balance sheet supported by our talented relationship bankers operating across
Second Quarter 2023 Balance Sheet Highlights
Loans
-
Total loans held for investment, net of mortgage warehouse purchase loans, were
$13.6 billion $13.0 billion $3.3 million $3.5 million $26.7 million $23.2 million 0.7% on an annualized basis, during second quarter 2023. -
Average mortgage warehouse purchase loans were
$413.2 million $298.0 million $467.8 million $115.2 million 38.7% from the linked quarter and a decrease of$54.6 million 11.7% year over year. The change from the prior year is reflective of decreased demand and lower volumes related to mortgage rate increases for the year over year period while the linked quarter change reflects an increase in volumes and improved margins.
Asset Quality
-
Nonperforming assets totaled
$60.5 million 0.32% of total assets at June 30, 2023, compared to$60.1 million 0.32% of total assets at March 31, 2023, and$82.9 million 0.46% of total assets at June 30, 2022. -
Nonperforming loans totaled
$37.9 million 0.28% of total loans held for investment at June 30, 2023, compared to$37.3 million 0.27% at March 31, 2023 and$69.9 million 0.54% at June 30, 2022. -
The slight increase in nonperforming loans from the linked quarter reflects an increase in loans 90 days past due and still accruing primarily due to three residential real estate loans totaling
$1.5 million $805 thousand $1.0 million -
The decrease in nonperforming loans for the year over year period primarily reflects the partial paydown and sale of a
$9.3 million $10.7 million $11.7 million $1.2 million $1.2 million -
Net (recoveries) charge-offs were (0.03)% annualized in the second quarter 2023 compared to
0.04% annualized in the linked quarter and0.09% annualized in the prior year quarter.
Deposits, Borrowings and Liquidity
-
Total deposits were
$14.9 billion $14.1 billion $15.1 billion -
Estimated uninsured deposits, excluding public funds deposits totaled
$4.6 billion 31.1% of total deposits as of June 30, 2023 compared to$5.3 billion 37.4% as of March 31, 2023. -
Total borrowings (other than junior subordinated debentures) were
$1.2 billion $957.3 million $670.5 million $30.0 million $925.0 million $32.5 million
Capital
-
The Company continues to be well capitalized under regulatory guidelines. At June 30, 2023, the estimated common equity Tier 1 to risk-weighted assets, Tier 1 capital to average assets, Tier 1 capital to risk-weighted assets and total capital to risk-weighted asset ratios were
9.78% ,8.92% ,10.13% and11.95% , respectively, compared to9.70% ,9.01% ,10.05% , and11.88% , respectively, at March 31, 2023 and9.81% ,9.28% ,10.17% , and12.24% , respectively at June 30, 2022.
Second Quarter 2023 Operating Results
Net Interest Income
-
Net interest income was
$113.6 million $138.0 million $127.9 million $870 thousand $2.3 million $1.0 million $17 thousand $837 thousand $15 thousand $69 thousand -
The average balance of total interest-earning assets grew by
$1.0 billion $16.8 billion $15.8 billion $425.8 million $16.4 billion $1.0 billion $244.1 million $247.0 million -
The yield on interest-earning assets was
5.14% for second quarter 2023 compared to3.83% for second quarter 2022 and4.98% for first quarter 2023. The increase in asset yield compared to the linked quarter and prior year is primarily a result of increases in the Fed Funds rate. The average loan yield, net of acquired loan accretion and PPP income was5.51% for the current quarter, compared to4.18% for prior year quarter and5.33% for the linked quarter. -
The cost of interest-bearing liabilities, including borrowings, was
3.37% for second quarter 2023 compared to0.50% for second quarter 2022 and2.63% for first quarter 2023. The increase from the linked quarter and prior year is reflective of higher funding costs, primarily on deposit products and FHLB advances as a result of Fed Funds rate increases. In addition, deposit funding costs were also higher due to promotional campaigns for certificate of deposit accounts. -
The net interest margin was
2.71% for second quarter 2023 compared to3.51% for second quarter 2022 and3.17% for first quarter 2023. The net interest margin excluding acquired loan accretion was2.69% for second quarter 2023 compared to3.45% second quarter 2022 and3.14% for first quarter 2023. The decrease in net interest margin from the prior year and linked quarter was primarily due to the increased funding costs on deposits and short-term advances resulting from continued Fed rate increases over the year, offset to a lesser extent by higher earnings on loans due to organic growth and rate increases and higher earnings on interest-bearing cash balances due to rate increases for the respective periods.
Noninterest Income
-
Total noninterest income increased
$218 thousand $1.3 million -
The change from the prior year quarter reflects an increase of
$469 thousand $242 thousand $196 thousand $359 thousand $367 thousand -
The change from the linked quarter primarily reflects the gain on sale of land discussed above, as well as increases of
$624 thousand $211 thousand
Noninterest Expense
-
Total noninterest expense decreased
$220 thousand $103.7 million $102.5 million -
The net decrease in noninterest expense in second quarter 2023 compared to the prior year is due primarily to decreases of
$4.2 million $2.3 million $1.6 million $1.4 million $2.2 million $1.0 million -
Excluding the non-recurring expense discussed above, the decrease in noninterest expense in second quarter 2023 compared to the linked quarter is due primarily to decreases of
$1.3 million $1.9 million $1.1 million -
The decrease in salaries and benefits from the prior year is due primarily to
$4.2 million $1.1 million $484 thousand $1.1 million $2.5 million - The increase in occupancy expenses from the prior year was primarily due to higher depreciation and property tax expense due to the opening of the second phase of the Company's headquarters campus in second quarter 2022. The increase in communications and technology expense from prior year was due to higher data processing costs and software expense for the year over year period.
- The increase in FDIC assessment compared to prior year and linked quarter was due to increases in the assessment rate charged by the FDIC which took effect in 2023, as well as an increase in the liquidity stress rate.
- The decrease in professional fees compared to the prior year and linked quarter was due primarily to lower consulting fees and legal fees.
-
The decrease in other noninterest expense compared to the linked quarter is primarily due to decreases of
$638 thousand $649 thousand
Provision for Credit Losses
-
The Company recorded
$220 thousand $90 thousand -
The allowance for credit losses on loans was
$147.8 million 1.08% of total loans held for investment, net of mortgage warehouse purchase loans, at June 30, 2023, compared to$144.2 million 1.11% at June 30, 2022 and compared to$146.9 million 1.08% at March 31, 2023. -
The allowance for credit losses on off-balance sheet exposures was
$4.9 million $4.7 million $4.8 million
Income Taxes
-
Federal income tax expense of
$8.7 million 20.8% compared to tax expense of$13.6 million 20.6% for the prior year quarter and income tax benefit of$11.3 million 23.1% for the linked quarter. The higher effective rate for the first quarter 2023 is due to the Company being in a loss position as a result of the settlement of the Stanford litigation.
Subsequent Events
The Company is required, under generally accepted accounting principles, to evaluate subsequent events through the filing of its consolidated financial statements for the quarter ended June 30, 2023 on Form 10-Q. As a result, the Company will continue to evaluate the impact of any subsequent events on critical accounting assumptions and estimates made as of June 30, 2023 and will adjust amounts preliminarily reported, if necessary.
About Independent Bank Group, Inc.
Independent Bank Group, Inc. is a bank holding company headquartered in
Conference Call
A conference call covering Independent Bank Group’s second quarter earnings announcement will be held on Tuesday, July 25, 2023 at 8:30 am (ET) and can be accessed by the webcast link, https://www.webcast-eqs.com/independentbankgroup07252023_en/en or by calling 1-877-407-0989 and by identifying the meeting number 13739682 or by identifying "Independent Bank Group Second Quarter 2023 Earnings Conference Call." The conference materials will also be available by accessing the Investor Relations page of our website, https://ir.ifinancial.com. If you are unable to participate in the live event, a recording of the conference call will be accessible via the Investor Relations page of our website.
Forward-Looking Statements
From time to time the Company’s comments and releases may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks and uncertainties and are made pursuant to the safe harbor provisions of Section 27A of the Securities Act, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and other related federal security laws. Forward-looking statements include information about the Company’s possible or assumed future results of operations, including its future revenues, income, expenses, provision for taxes, effective tax rate, earnings (loss) per share and cash flows, its future capital expenditures and dividends, its future financial condition and changes therein, including changes in the Company’s loan portfolio and allowance for credit losses, the Company’s future capital structure or changes therein, the plan and objectives of management for future operations, the Company’s future or proposed acquisitions, the future or expected effect of acquisitions on the Company’s operations, results of operations and financial condition, the Company’s future economic performance and the statements of the assumptions underlying any such statement. Such statements are typically, but not exclusively, identified by the use in the statements of words or phrases such as “aim,” “anticipate,” “estimate,” “expect,” “goal,” “guidance,” “intend,” “is anticipated,” “is estimated,” “is expected,” “is intended,” “objective,” “plan,” “projected,” “projection,” “will affect,” “will be,” “will continue,” “will decrease,” “will grow,” “will impact,” “will increase,” “will incur,” “will reduce,” “will remain,” “will result,” “would be,” variations of such words or phrases (including where the word “could,” “may” or “would” is used rather than the word “will” in a phrase) and similar words and phrases indicating that the statement addresses some future result, occurrence, plan or objective. The forward-looking statements that the Company makes are based on its current expectations and assumptions regarding its business, the economy, and other future conditions. Because forward-looking statements relate to future results and occurrences, they are subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict. The Company’s actual results may differ materially from those contemplated by the forward looking statements, which are neither statements of historical fact nor guarantees or assurances of future performance. Many possible events or factors could affect the Company’s future financial results and performance and could cause those results or performance to differ materially from those expressed in the forward-looking statements. These possible events or factors include, but are not limited to: 1) the effects of infectious disease outbreaks, including the ongoing COVID-19 pandemic and the significant impact that the COVID-19 pandemic and associated efforts to limit its spread have had and may continue to have on economic conditions and the Company's business, employees, customers, asset quality and financial performance; 2) the Company’s ability to sustain its current internal growth rate and total growth rate; 3) changes in geopolitical, business and economic events, occurrences and conditions, including changes in rates of inflation or deflation, nationally, regionally and in the Company’s target markets, particularly in
Non-GAAP Financial Measures
In addition to results presented in accordance with GAAP, this press release contains certain non-GAAP financial measures. These measures and ratios include “adjusted net income,” “adjusted earnings,” “tangible book value,” “tangible book value per common share,” “adjusted efficiency ratio,” “tangible common equity to tangible assets,” “adjusted net interest margin,” “return on tangible equity,” “adjusted return on average assets” and “adjusted return on average equity” and are supplemental measures that are not required by, or are not presented in accordance with, accounting principles generally accepted in
We believe that these measures provide useful information to management and investors that is supplementary to our financial condition, results of operations and cash flows computed in accordance with GAAP; however we acknowledge that our financial measures have a number of limitations relative to GAAP financial measures. Certain non-GAAP financial measures exclude items of income, expenditures, expenses, assets, or liabilities, including provisions for credit losses and the effect of goodwill, other intangible assets and income from accretion on acquired loans arising from purchase accounting adjustments, that we believe cause certain aspects of our results of operations or financial condition to be not indicative of our primary operating results. All of these items significantly impact our financial statements. Additionally, the items that we exclude in our adjustments are not necessarily consistent with the items that our peers may exclude from their results of operations and key financial measures and therefore may limit the comparability of similarly named financial measures and ratios. We compensate for these limitations by providing the equivalent GAAP measures whenever we present the non-GAAP financial measures and by including a reconciliation of the impact of the components adjusted for in the non-GAAP financial measure so that both measures and the individual components may be considered when analyzing our performance.
A reconciliation of our non-GAAP financial measures to the comparable GAAP financial measures is included at the end of the financial statements tables.
Independent Bank Group, Inc. and Subsidiaries |
|||||||||||||||
Consolidated Financial Data |
|||||||||||||||
Three Months Ended June 30, 2023, March 31, 2023, December 31, 2022, September 30, 2022 and June 30, 2022 |
|||||||||||||||
(Dollars in thousands, except for share data) |
|||||||||||||||
(Unaudited) |
|||||||||||||||
|
As of and for the Quarter Ended |
||||||||||||||
|
June 30, 2023 |
|
March 31, 2023 |
|
December 31, 2022 |
|
September 30, 2022 |
|
June 30, 2022 |
||||||
Selected Income Statement Data |
|
|
|
|
|
|
|
|
|
||||||
Interest income |
$ |
215,294 |
|
$ |
201,176 |
|
|
$ |
189,769 |
|
$ |
173,687 |
|
$ |
150,696 |
Interest expense |
|
101,687 |
|
|
73,254 |
|
|
|
47,982 |
|
|
26,413 |
|
|
12,697 |
Net interest income |
|
113,607 |
|
|
127,922 |
|
|
|
141,787 |
|
|
147,274 |
|
|
137,999 |
Provision for credit losses |
|
220 |
|
|
90 |
|
|
|
2,833 |
|
|
3,100 |
|
|
— |
Net interest income after provision for credit losses |
|
113,387 |
|
|
127,832 |
|
|
|
138,954 |
|
|
144,174 |
|
|
137,999 |
Noninterest income |
|
14,095 |
|
|
12,754 |
|
|
|
11,227 |
|
|
13,477 |
|
|
13,877 |
Noninterest expense |
|
85,705 |
|
|
189,380 |
|
|
|
98,774 |
|
|
91,733 |
|
|
85,925 |
Income tax expense (benefit) |
|
8,700 |
|
|
(11,284 |
) |
|
|
10,653 |
|
|
13,481 |
|
|
13,591 |
Net income (loss) |
|
33,077 |
|
|
(37,510 |
) |
|
|
40,754 |
|
|
52,437 |
|
|
52,360 |
Adjusted net income (1) |
|
33,726 |
|
|
44,083 |
|
|
|
49,433 |
|
|
54,880 |
|
|
53,304 |
|
|
|
|
|
|
|
|
|
|
||||||
Per Share Data (Common Stock) |
|
|
|
|
|
|
|
|
|
||||||
Earnings (loss): |
|
|
|
|
|
|
|
|
|
||||||
Basic |
$ |
0.80 |
|
$ |
(0.91 |
) |
|
$ |
0.99 |
|
$ |
1.27 |
|
$ |
1.25 |
Diluted |
|
0.80 |
|
|
(0.91 |
) |
|
|
0.99 |
|
|
1.27 |
|
|
1.25 |
Adjusted earnings: |
|
|
|
|
|
|
|
|
|
||||||
Basic (1) |
|
0.82 |
|
|
1.07 |
|
|
|
1.20 |
|
|
1.33 |
|
|
1.28 |
Diluted (1) |
|
0.82 |
|
|
1.07 |
|
|
|
1.20 |
|
|
1.33 |
|
|
1.27 |
Dividends |
|
0.38 |
|
|
0.38 |
|
|
|
0.38 |
|
|
0.38 |
|
|
0.38 |
Book value |
|
57.00 |
|
|
56.95 |
|
|
|
57.91 |
|
|
57.19 |
|
|
57.45 |
Tangible book value (1) |
|
31.55 |
|
|
31.42 |
|
|
|
32.25 |
|
|
31.44 |
|
|
31.61 |
Common shares outstanding |
|
41,279,460 |
|
|
41,281,904 |
|
|
|
41,190,677 |
|
|
41,165,006 |
|
|
41,156,261 |
Weighted average basic shares outstanding (2) |
|
41,280,312 |
|
|
41,223,376 |
|
|
|
41,193,716 |
|
|
41,167,258 |
|
|
41,737,534 |
Weighted average diluted shares outstanding (2) |
|
41,365,275 |
|
|
41,316,798 |
|
|
|
41,285,383 |
|
|
41,253,662 |
|
|
41,813,443 |
|
|
|
|
|
|
|
|
|
|
||||||
Selected Period End Balance Sheet Data |
|
|
|
|
|
|
|
|
|
||||||
Total assets |
$ |
18,719,802 |
|
$ |
18,798,354 |
|
|
$ |
18,258,414 |
|
$ |
17,944,493 |
|
$ |
18,107,093 |
Cash and cash equivalents |
|
902,882 |
|
|
1,048,590 |
|
|
|
654,322 |
|
|
516,159 |
|
|
776,131 |
Securities available for sale |
|
1,637,682 |
|
|
1,675,415 |
|
|
|
1,691,784 |
|
|
1,730,163 |
|
|
1,846,132 |
Securities held to maturity |
|
206,146 |
|
|
206,602 |
|
|
|
207,059 |
|
|
207,516 |
|
|
207,972 |
Loans, held for sale |
|
18,624 |
|
|
16,576 |
|
|
|
11,310 |
|
|
21,973 |
|
|
26,519 |
Loans, held for investment (3) |
|
13,628,025 |
|
|
13,606,039 |
|
|
|
13,597,264 |
|
|
13,285,757 |
|
|
12,979,938 |
Mortgage warehouse purchase loans |
|
491,090 |
|
|
400,547 |
|
|
|
312,099 |
|
|
409,044 |
|
|
538,190 |
Allowance for credit losses on loans |
|
147,804 |
|
|
146,850 |
|
|
|
148,787 |
|
|
146,395 |
|
|
144,170 |
Goodwill and other intangible assets |
|
1,050,798 |
|
|
1,053,909 |
|
|
|
1,057,020 |
|
|
1,060,131 |
|
|
1,063,248 |
Other real estate owned |
|
22,505 |
|
|
22,700 |
|
|
|
23,900 |
|
|
23,900 |
|
|
12,900 |
Noninterest-bearing deposits |
|
3,905,492 |
|
|
4,148,360 |
|
|
|
4,736,830 |
|
|
5,107,001 |
|
|
5,123,321 |
Interest-bearing deposits |
|
10,968,014 |
|
|
9,907,327 |
|
|
|
10,384,587 |
|
|
9,854,007 |
|
|
9,940,627 |
Borrowings (other than junior subordinated debentures) |
|
1,180,262 |
|
|
2,137,607 |
|
|
|
567,066 |
|
|
466,892 |
|
|
509,718 |
Junior subordinated debentures |
|
54,518 |
|
|
54,469 |
|
|
|
54,419 |
|
|
54,370 |
|
|
54,320 |
Total stockholders' equity |
|
2,353,042 |
|
|
2,350,857 |
|
|
|
2,385,383 |
|
|
2,354,340 |
|
|
2,364,335 |
Independent Bank Group, Inc. and Subsidiaries |
||||||||||||||
Consolidated Financial Data |
||||||||||||||
Three Months Ended June 30, 2023, March 31, 2023, December 31, 2022, September 30, 2022 and June 30, 2022 |
||||||||||||||
(Dollars in thousands, except for share data) |
||||||||||||||
(Unaudited) |
||||||||||||||
|
As of and for the Quarter Ended |
|||||||||||||
|
June 30, 2023 |
|
March 31, 2023 |
|
December 31, 2022 |
|
September 30, 2022 |
|
June 30, 2022 |
|||||
Selected Performance Metrics |
|
|
|
|
|
|
|
|
|
|||||
Return on average assets |
0.71 |
% |
|
(0.83 |
)% |
|
0.90 |
% |
|
1.16 |
% |
|
1.19 |
% |
Return on average equity |
5.62 |
|
|
(6.39 |
) |
|
6.85 |
|
|
8.66 |
|
|
8.62 |
|
Return on tangible equity (4) |
10.14 |
|
|
(11.48 |
) |
|
12.42 |
|
|
15.52 |
|
|
15.32 |
|
Adjusted return on average assets (1) |
0.73 |
|
|
0.98 |
|
|
1.09 |
|
|
1.22 |
|
|
1.21 |
|
Adjusted return on average equity (1) |
5.73 |
|
|
7.51 |
|
|
8.31 |
|
|
9.07 |
|
|
8.78 |
|
Adjusted return on tangible equity (1) (4) |
10.34 |
|
|
13.49 |
|
|
15.07 |
|
|
16.24 |
|
|
15.60 |
|
Net interest margin |
2.71 |
|
|
3.17 |
|
|
3.49 |
|
|
3.64 |
|
|
3.51 |
|
Efficiency ratio (5) |
64.68 |
|
|
132.41 |
|
|
62.52 |
|
|
55.13 |
|
|
54.52 |
|
Adjusted efficiency ratio (1) (5) |
63.93 |
|
|
58.17 |
|
|
55.51 |
|
|
53.23 |
|
|
53.75 |
|
|
|
|
|
|
|
|
|
|
|
|||||
Credit Quality Ratios (3) (6) |
|
|
|
|
|
|
|
|
|
|||||
Nonperforming assets to total assets |
0.32 |
% |
|
0.32 |
% |
|
0.35 |
% |
|
0.45 |
% |
|
0.46 |
% |
Nonperforming loans to total loans held for investment |
0.28 |
|
|
0.27 |
|
|
0.29 |
|
|
0.43 |
|
|
0.54 |
|
Nonperforming assets to total loans held for investment and other real estate |
0.44 |
|
|
0.44 |
|
|
0.47 |
|
|
0.61 |
|
|
0.64 |
|
Allowance for credit losses on loans to nonperforming loans |
389.84 |
|
|
393.69 |
|
|
371.14 |
|
|
256.65 |
|
|
206.28 |
|
Allowance for credit losses to total loans held for investment |
1.08 |
|
|
1.08 |
|
|
1.09 |
|
|
1.10 |
|
|
1.11 |
|
Net (recoveries) charge-offs to average loans outstanding (annualized) |
(0.03 |
) |
|
0.04 |
|
|
0.02 |
|
|
0.04 |
|
|
0.09 |
|
|
|
|
|
|
|
|
|
|
|
|||||
Capital Ratios |
|
|
|
|
|
|
|
|
|
|||||
Estimated common equity Tier 1 capital to risk-weighted assets |
9.78 |
% |
|
9.70 |
% |
|
10.09 |
% |
|
10.00 |
% |
|
9.81 |
% |
Estimated tier 1 capital to average assets |
8.92 |
|
|
9.01 |
|
|
9.49 |
|
|
9.41 |
|
|
9.28 |
|
Estimated tier 1 capital to risk-weighted assets |
10.13 |
|
|
10.05 |
|
|
10.45 |
|
|
10.35 |
|
|
10.17 |
|
Estimated total capital to risk-weighted assets |
11.95 |
|
|
11.88 |
|
|
12.35 |
|
|
12.27 |
|
|
12.24 |
|
Total stockholders' equity to total assets |
12.57 |
|
|
12.51 |
|
|
13.06 |
|
|
13.12 |
|
|
13.06 |
|
Tangible common equity to tangible assets (1) |
7.37 |
|
|
7.31 |
|
|
7.72 |
|
|
7.67 |
|
|
7.63 |
|
| ________________ |
(1) Non-GAAP financial measure. See reconciliation. |
(2) Total number of shares includes participating shares (those with dividend rights). |
(3) Loans held for investment excludes mortgage warehouse purchase loans and includes SBA PPP loans of |
(4) Non-GAAP financial measure. Excludes average balance of goodwill and net other intangible assets. |
(5) Efficiency ratio excludes amortization of other intangible assets. See reconciliation of Non-GAAP financial measures. |
(6) Credit metrics - Nonperforming assets, which consist of nonperforming loans, OREO and other repossessed assets, totaled |
Independent Bank Group, Inc. and Subsidiaries |
||||||||||||||||
Consolidated Statements of Income |
||||||||||||||||
Three and Six Months Ended June 30, 2023 and 2022 |
||||||||||||||||
(Dollars in thousands) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Interest income: |
|
|
|
|
|
|
|
|
||||||||
Interest and fees on loans |
|
$ |
193,612 |
|
|
$ |
138,426 |
|
|
$ |
377,906 |
|
|
$ |
267,605 |
|
Interest on taxable securities |
|
|
7,791 |
|
|
|
8,243 |
|
|
|
15,649 |
|
|
|
16,602 |
|
Interest on nontaxable securities |
|
|
2,586 |
|
|
|
2,741 |
|
|
|
5,189 |
|
|
|
5,074 |
|
Interest on interest-bearing deposits and other |
|
|
11,305 |
|
|
|
1,286 |
|
|
|
17,726 |
|
|
|
2,280 |
|
Total interest income |
|
|
215,294 |
|
|
|
150,696 |
|
|
|
416,470 |
|
|
|
291,561 |
|
Interest expense: |
|
|
|
|
|
|
|
|
||||||||
Interest on deposits |
|
|
78,144 |
|
|
|
8,110 |
|
|
|
140,405 |
|
|
|
13,720 |
|
Interest on FHLB advances |
|
|
18,025 |
|
|
|
164 |
|
|
|
23,849 |
|
|
|
343 |
|
Interest on other borrowings |
|
|
4,361 |
|
|
|
3,869 |
|
|
|
8,440 |
|
|
|
7,351 |
|
Interest on junior subordinated debentures |
|
|
1,157 |
|
|
|
554 |
|
|
|
2,247 |
|
|
|
1,000 |
|
Total interest expense |
|
|
101,687 |
|
|
|
12,697 |
|
|
|
174,941 |
|
|
|
22,414 |
|
Net interest income |
|
|
113,607 |
|
|
|
137,999 |
|
|
|
241,529 |
|
|
|
269,147 |
|
Provision for credit losses |
|
|
220 |
|
|
|
— |
|
|
|
310 |
|
|
|
(1,443 |
) |
Net interest income after provision for credit losses |
|
|
113,387 |
|
|
|
137,999 |
|
|
|
241,219 |
|
|
|
270,590 |
|
Noninterest income: |
|
|
|
|
|
|
|
|
||||||||
Service charges on deposit accounts |
|
|
3,519 |
|
|
|
3,050 |
|
|
|
6,868 |
|
|
|
5,802 |
|
Investment management fees |
|
|
2,444 |
|
|
|
2,391 |
|
|
|
4,745 |
|
|
|
4,842 |
|
Mortgage banking revenue |
|
|
2,248 |
|
|
|
2,490 |
|
|
|
3,872 |
|
|
|
5,516 |
|
Mortgage warehouse purchase program fees |
|
|
535 |
|
|
|
731 |
|
|
|
859 |
|
|
|
1,689 |
|
Loss on sale of loans |
|
|
(7 |
) |
|
|
(17 |
) |
|
|
(7 |
) |
|
|
(1,501 |
) |
Gain (loss) on sale and disposal of premises and equipment |
|
|
354 |
|
|
|
(46 |
) |
|
|
401 |
|
|
|
(209 |
) |
Increase in cash surrender value of BOLI |
|
|
1,410 |
|
|
|
1,327 |
|
|
|
2,787 |
|
|
|
2,637 |
|
Other |
|
|
3,592 |
|
|
|
3,951 |
|
|
|
7,324 |
|
|
|
7,986 |
|
Total noninterest income |
|
|
14,095 |
|
|
|
13,877 |
|
|
|
26,849 |
|
|
|
26,762 |
|
Noninterest expense: |
|
|
|
|
|
|
|
|
||||||||
Salaries and employee benefits |
|
|
46,940 |
|
|
|
51,130 |
|
|
|
93,215 |
|
|
|
100,685 |
|
Occupancy |
|
|
11,640 |
|
|
|
10,033 |
|
|
|
23,199 |
|
|
|
20,033 |
|
Communications and technology |
|
|
7,196 |
|
|
|
5,830 |
|
|
|
14,286 |
|
|
|
11,731 |
|
FDIC assessment |
|
|
3,806 |
|
|
|
1,589 |
|
|
|
6,518 |
|
|
|
3,082 |
|
Advertising and public relations |
|
|
1,004 |
|
|
|
703 |
|
|
|
1,608 |
|
|
|
1,159 |
|
Other real estate owned (income) expenses, net |
|
|
(185 |
) |
|
|
66 |
|
|
|
(229 |
) |
|
|
66 |
|
Impairment of other real estate |
|
|
1,000 |
|
|
|
— |
|
|
|
2,200 |
|
|
|
— |
|
Amortization of other intangible assets |
|
|
3,111 |
|
|
|
3,118 |
|
|
|
6,222 |
|
|
|
6,263 |
|
Litigation settlement |
|
|
— |
|
|
|
— |
|
|
|
102,500 |
|
|
|
— |
|
Professional fees |
|
|
1,785 |
|
|
|
4,094 |
|
|
|
4,850 |
|
|
|
7,533 |
|
Other |
|
|
9,408 |
|
|
|
9,362 |
|
|
|
20,716 |
|
|
|
17,830 |
|
Total noninterest expense |
|
|
85,705 |
|
|
|
85,925 |
|
|
|
275,085 |
|
|
|
168,382 |
|
Income (loss) before taxes |
|
|
41,777 |
|
|
|
65,951 |
|
|
|
(7,017 |
) |
|
|
128,970 |
|
Income tax expense (benefit) |
|
|
8,700 |
|
|
|
13,591 |
|
|
|
(2,584 |
) |
|
|
25,870 |
|
Net income (loss) |
|
$ |
33,077 |
|
|
$ |
52,360 |
|
|
$ |
(4,433 |
) |
|
$ |
103,100 |
|
Independent Bank Group, Inc. and Subsidiaries |
|||||||
Consolidated Balance Sheets |
|||||||
As of June 30, 2023 and December 31, 2022 |
|||||||
(Dollars in thousands) |
|||||||
(Unaudited) |
|||||||
|
June 30, |
|
December 31, |
||||
Assets |
2023 |
|
2022 |
||||
Cash and due from banks |
$ |
127,438 |
|
|
$ |
134,183 |
|
Interest-bearing deposits in other banks |
|
775,444 |
|
|
|
520,139 |
|
Cash and cash equivalents |
|
902,882 |
|
|
|
654,322 |
|
Certificates of deposit held in other banks |
|
248 |
|
|
|
496 |
|
Securities available for sale, at fair value |
|
1,637,682 |
|
|
|
1,691,784 |
|
Securities held to maturity, net of allowance for credit losses of |
|
206,146 |
|
|
|
207,059 |
|
Loans held for sale (includes |
|
18,624 |
|
|
|
11,310 |
|
Loans, net of allowance for credit losses of |
|
13,971,311 |
|
|
|
13,760,576 |
|
Premises and equipment, net |
|
354,941 |
|
|
|
355,368 |
|
Other real estate owned |
|
22,505 |
|
|
|
23,900 |
|
Federal Home Loan Bank (FHLB) of |
|
67,520 |
|
|
|
23,436 |
|
Bank-owned life insurance (BOLI) |
|
242,805 |
|
|
|
240,448 |
|
Deferred tax asset |
|
97,289 |
|
|
|
78,669 |
|
Goodwill |
|
994,021 |
|
|
|
994,021 |
|
Other intangible assets, net |
|
56,777 |
|
|
|
62,999 |
|
Other assets |
|
147,051 |
|
|
|
154,026 |
|
Total assets |
$ |
18,719,802 |
|
|
$ |
18,258,414 |
|
|
|
|
|
||||
Liabilities and Stockholders’ Equity |
|
|
|
||||
Deposits: |
|
|
|
||||
Noninterest-bearing |
$ |
3,905,492 |
|
|
$ |
4,736,830 |
|
Interest-bearing |
|
10,968,014 |
|
|
|
10,384,587 |
|
Total deposits |
|
14,873,506 |
|
|
|
15,121,417 |
|
FHLB advances |
|
875,000 |
|
|
|
300,000 |
|
Other borrowings |
|
305,262 |
|
|
|
267,066 |
|
Junior subordinated debentures |
|
54,518 |
|
|
|
54,419 |
|
Other liabilities |
|
258,474 |
|
|
|
130,129 |
|
Total liabilities |
|
16,366,760 |
|
|
|
15,873,031 |
|
Commitments and contingencies |
|
— |
|
|
|
— |
|
Stockholders’ equity: |
|
|
|
||||
Preferred stock (0 and 0 shares outstanding, respectively) |
|
— |
|
|
|
— |
|
Common stock (41,279,460 and 41,190,677 shares outstanding, respectively) |
|
413 |
|
|
|
412 |
|
Additional paid-in capital |
|
1,964,341 |
|
|
|
1,959,193 |
|
Retained earnings |
|
600,829 |
|
|
|
638,354 |
|
Accumulated other comprehensive loss |
|
(212,541 |
) |
|
|
(212,576 |
) |
Total stockholders’ equity |
|
2,353,042 |
|
|
|
2,385,383 |
|
Total liabilities and stockholders’ equity |
$ |
18,719,802 |
|
|
$ |
18,258,414 |
|
Independent Bank Group, Inc. and Subsidiaries |
||||||||||||||||||
Consolidated Average Balance Sheet Amounts, Interest Earned and Yield Analysis |
||||||||||||||||||
Three Months Ended June 30, 2023 and 2022 |
||||||||||||||||||
(Dollars in thousands) |
||||||||||||||||||
(Unaudited) |
||||||||||||||||||
|
||||||||||||||||||
The analysis below shows average interest-earning assets and interest-bearing liabilities together with the average yield on the interest-earning assets and the average cost of the interest-bearing liabilities for the periods presented. |
||||||||||||||||||
|
|
Three Months Ended June 30, |
||||||||||||||||
|
|
2023 |
|
2022 |
||||||||||||||
|
|
Average
|
|
Interest |
|
Yield/
|
|
Average
|
|
Interest |
|
Yield/
|
||||||
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Loans (1) |
|
$ |
14,027,773 |
|
$ |
193,612 |
|
5.54 |
% |
|
$ |
12,993,624 |
|
$ |
138,426 |
|
4.27 |
% |
Taxable securities |
|
|
1,456,873 |
|
|
7,791 |
|
2.14 |
|
|
|
1,703,850 |
|
|
8,243 |
|
1.94 |
|
Nontaxable securities |
|
|
418,575 |
|
|
2,586 |
|
2.48 |
|
|
|
440,972 |
|
|
2,741 |
|
2.49 |
|
Interest-bearing deposits and other |
|
|
893,752 |
|
|
11,305 |
|
5.07 |
|
|
|
649,649 |
|
|
1,286 |
|
0.79 |
|
Total interest-earning assets |
|
|
16,796,973 |
|
|
215,294 |
|
5.14 |
|
|
|
15,788,095 |
|
|
150,696 |
|
3.83 |
|
Noninterest-earning assets |
|
|
1,855,477 |
|
|
|
|
|
|
1,927,894 |
|
|
|
|
||||
Total assets |
|
$ |
18,652,450 |
|
|
|
|
|
$ |
17,715,989 |
|
|
|
|
||||
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Checking accounts |
|
$ |
5,646,603 |
|
$ |
41,943 |
|
2.98 |
% |
|
$ |
5,881,199 |
|
$ |
4,587 |
|
0.31 |
% |
Savings accounts |
|
|
638,292 |
|
|
83 |
|
0.05 |
|
|
|
797,211 |
|
|
97 |
|
0.05 |
|
Money market accounts |
|
|
1,421,920 |
|
|
11,012 |
|
3.11 |
|
|
|
2,072,654 |
|
|
2,709 |
|
0.52 |
|
Certificates of deposit |
|
|
2,614,849 |
|
|
25,106 |
|
3.85 |
|
|
|
877,237 |
|
|
717 |
|
0.33 |
|
Total deposits |
|
|
10,321,664 |
|
|
78,144 |
|
3.04 |
|
|
|
9,628,301 |
|
|
8,110 |
|
0.34 |
|
FHLB advances |
|
|
1,412,637 |
|
|
18,025 |
|
5.12 |
|
|
|
132,143 |
|
|
164 |
|
0.50 |
|
Other borrowings - short-term |
|
|
74,643 |
|
|
1,291 |
|
6.94 |
|
|
|
42,402 |
|
|
405 |
|
3.83 |
|
Other borrowings - long-term |
|
|
237,708 |
|
|
3,070 |
|
5.18 |
|
|
|
266,658 |
|
|
3,464 |
|
5.21 |
|
Junior subordinated debentures |
|
|
54,501 |
|
|
1,157 |
|
8.51 |
|
|
|
54,303 |
|
|
554 |
|
4.09 |
|
Total interest-bearing liabilities |
|
|
12,101,153 |
|
|
101,687 |
|
3.37 |
|
|
|
10,123,807 |
|
|
12,697 |
|
0.50 |
|
Noninterest-bearing checking accounts |
|
|
3,979,818 |
|
|
|
|
|
|
5,044,507 |
|
|
|
|
||||
Noninterest-bearing liabilities |
|
|
211,253 |
|
|
|
|
|
|
112,558 |
|
|
|
|
||||
Stockholders’ equity |
|
|
2,360,226 |
|
|
|
|
|
|
2,435,117 |
|
|
|
|
||||
Total liabilities and equity |
|
$ |
18,652,450 |
|
|
|
|
|
$ |
17,715,989 |
|
|
|
|
||||
Net interest income |
|
|
|
$ |
113,607 |
|
|
|
|
|
$ |
137,999 |
|
|
||||
Interest rate spread |
|
|
|
|
|
1.77 |
% |
|
|
|
|
|
3.33 |
% |
||||
Net interest margin (2) |
|
|
|
|
|
2.71 |
|
|
|
|
|
|
3.51 |
|
||||
Net interest income and margin (tax equivalent basis) (3) |
|
|
|
$ |
114,642 |
|
2.74 |
|
|
|
|
$ |
139,112 |
|
3.53 |
|
||
Average interest-earning assets to interest-bearing liabilities |
|
|
|
|
|
138.80 |
|
|
|
|
|
|
155.95 |
|
||||
| _______________ |
(1) Average loan balances include nonaccrual loans. |
(2) Net interest margins for the periods presented represent: (i) the difference between interest income on interest-earning assets and the interest expense on interest-bearing liabilities, divided by (ii) average interest-earning assets for the period. |
(3) A tax-equivalent adjustment has been computed using a federal income tax rate of |
(4) Yield and rates for the three month periods are annualized. |
Independent Bank Group, Inc. and Subsidiaries |
||||||||||||||||||
Consolidated Average Balance Sheet Amounts, Interest Earned and Yield Analysis |
||||||||||||||||||
Six Months Ended June 30, 2023 and 2022 |
||||||||||||||||||
(Dollars in thousands) |
||||||||||||||||||
(Unaudited) |
||||||||||||||||||
|
||||||||||||||||||
The analysis below shows average interest-earning assets and interest-bearing liabilities together with the average yield on the interest-earning assets and the average cost of the interest-bearing liabilities for the periods presented. |
||||||||||||||||||
|
|
Six Months Ended June 30, |
||||||||||||||||
|
|
2023 |
|
2022 |
||||||||||||||
|
|
Average
|
|
Interest |
|
Yield/
|
|
Average
|
|
Interest |
|
Yield/
|
||||||
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Loans (1) |
|
$ |
13,980,015 |
|
$ |
377,906 |
|
5.45 |
% |
|
$ |
12,658,541 |
|
$ |
267,605 |
|
4.26 |
% |
Taxable securities |
|
|
1,460,902 |
|
|
15,649 |
|
2.16 |
|
|
|
1,696,572 |
|
|
16,602 |
|
1.97 |
|
Nontaxable securities |
|
|
421,052 |
|
|
5,189 |
|
2.49 |
|
|
|
426,447 |
|
|
5,074 |
|
2.40 |
|
Interest-bearing deposits and other |
|
|
723,305 |
|
|
17,726 |
|
4.94 |
|
|
|
1,377,902 |
|
|
2,280 |
|
0.33 |
|
Total interest-earning assets |
|
|
16,585,274 |
|
|
416,470 |
|
5.06 |
|
|
|
16,159,462 |
|
|
291,561 |
|
3.64 |
|
Noninterest-earning assets |
|
|
1,856,383 |
|
|
|
|
|
|
1,916,191 |
|
|
|
|
||||
Total assets |
|
$ |
18,441,657 |
|
|
|
|
|
$ |
18,075,653 |
|
|
|
|
||||
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Checking accounts |
|
$ |
5,958,145 |
|
$ |
80,836 |
|
2.74 |
% |
|
$ |
6,058,317 |
|
$ |
7,669 |
|
0.26 |
% |
Savings accounts |
|
|
683,321 |
|
|
173 |
|
0.05 |
|
|
|
788,842 |
|
|
191 |
|
0.05 |
|
Money market accounts |
|
|
1,598,603 |
|
|
23,446 |
|
2.96 |
|
|
|
2,204,570 |
|
|
4,412 |
|
0.40 |
|
Certificates of deposit |
|
|
2,115,827 |
|
|
35,950 |
|
3.43 |
|
|
|
925,099 |
|
|
1,448 |
|
0.32 |
|
Total deposits |
|
|
10,355,896 |
|
|
140,405 |
|
2.73 |
|
|
|
9,976,828 |
|
|
13,720 |
|
0.28 |
|
FHLB advances |
|
|
997,099 |
|
|
23,849 |
|
4.82 |
|
|
|
141,022 |
|
|
343 |
|
0.49 |
|
Other borrowings - short-term |
|
|
39,743 |
|
|
1,344 |
|
6.82 |
|
|
|
23,048 |
|
|
423 |
|
3.70 |
|
Other borrowings - long-term |
|
|
252,034 |
|
|
7,096 |
|
5.68 |
|
|
|
266,571 |
|
|
6,928 |
|
5.24 |
|
Junior subordinated debentures |
|
|
54,476 |
|
|
2,247 |
|
8.32 |
|
|
|
54,278 |
|
|
1,000 |
|
3.72 |
|
Total interest-bearing liabilities |
|
|
11,699,248 |
|
|
174,941 |
|
3.02 |
|
|
|
10,461,747 |
|
|
22,414 |
|
0.43 |
|
Noninterest-bearing checking accounts |
|
|
4,191,141 |
|
|
|
|
|
|
5,002,121 |
|
|
|
|
||||
Noninterest-bearing liabilities |
|
|
181,000 |
|
|
|
|
|
|
106,723 |
|
|
|
|
||||
Stockholders’ equity |
|
|
2,370,268 |
|
|
|
|
|
|
2,505,062 |
|
|
|
|
||||
Total liabilities and equity |
|
$ |
18,441,657 |
|
|
|
|
|
$ |
18,075,653 |
|
|
|
|
||||
Net interest income |
|
|
|
$ |
241,529 |
|
|
|
|
|
$ |
269,147 |
|
|
||||
Interest rate spread |
|
|
|
|
|
2.04 |
% |
|
|
|
|
|
3.21 |
% |
||||
Net interest margin (2) |
|
|
|
|
|
2.94 |
|
|
|
|
|
|
3.36 |
|
||||
Net interest income and margin (tax equivalent basis) (3) |
|
|
|
$ |
243,604 |
|
2.96 |
|
|
|
|
$ |
271,290 |
|
3.39 |
|
||
Average interest-earning assets to interest-bearing liabilities |
|
|
|
|
|
141.76 |
|
|
|
|
|
|
154.46 |
|
||||
| ________________ |
(1) Average loan balances include nonaccrual loans. |
(2) Net interest margins for the periods presented represent: (i) the difference between interest income on interest-earning assets and the interest expense on interest-bearing liabilities, divided by (ii) average interest-earning assets for the period. |
(3) A tax-equivalent adjustment has been computed using a federal income tax rate of |
(4) Yield and rates for the six month periods are annualized. |
Independent Bank Group, Inc. and Subsidiaries |
||||||||||||||
Loan Portfolio Composition |
||||||||||||||
As of June 30, 2023 and December 31, 2022 |
||||||||||||||
(Dollars in thousands) |
||||||||||||||
(Unaudited) |
||||||||||||||
Total Loans By Class |
|
|
|
|
||||||||||
|
|
June 30, 2023 |
|
December 31, 2022 |
||||||||||
|
|
Amount |
|
% of Total |
|
Amount |
|
% of Total |
||||||
Commercial (1) |
|
$ |
2,216,957 |
|
|
15.7 |
% |
|
$ |
2,240,959 |
|
|
16.1 |
% |
Mortgage warehouse purchase loans |
|
|
491,090 |
|
|
3.5 |
|
|
|
312,099 |
|
|
2.2 |
|
Real estate: |
|
|
|
|
|
|
|
|
||||||
Commercial real estate |
|
|
7,990,123 |
|
|
56.5 |
|
|
|
7,817,447 |
|
|
56.2 |
|
Commercial construction, land and land development |
|
|
1,122,400 |
|
|
7.9 |
|
|
|
1,231,071 |
|
|
8.8 |
|
Residential real estate (2) |
|
|
1,634,527 |
|
|
11.6 |
|
|
|
1,604,169 |
|
|
11.5 |
|
Single-family interim construction |
|
|
483,274 |
|
|
3.4 |
|
|
|
508,839 |
|
|
3.7 |
|
Agricultural |
|
|
118,054 |
|
|
0.8 |
|
|
|
124,422 |
|
|
0.9 |
|
Consumer |
|
|
81,314 |
|
|
0.6 |
|
|
|
81,667 |
|
|
0.6 |
|
Total loans |
|
|
14,137,739 |
|
|
100.0 |
% |
|
|
13,920,673 |
|
|
100.0 |
% |
Allowance for credit losses |
|
|
(147,804 |
) |
|
|
|
|
(148,787 |
) |
|
|
||
Total loans, net |
|
$ |
13,989,935 |
|
|
|
|
$ |
13,771,886 |
|
|
|
||
| _______________ |
(1) Includes SBA PPP loans of |
(2) Includes loans held for sale of |
Independent Bank Group, Inc. and Subsidiaries |
||||||||||||||||||||
Reconciliation of Non-GAAP Financial Measures |
||||||||||||||||||||
Three Months Ended June 30, 2023, March 31, 2023, December 31, 2022, September 30, 2022 and June 30, 2022 |
||||||||||||||||||||
(Dollars in thousands, except for share data) |
||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||
|
|
For the Three Months Ended |
||||||||||||||||||
|
|
June 30, 2023 |
|
March 31, 2023 |
|
December 31, 2022 |
|
September 30, 2022 |
|
June 30, 2022 |
||||||||||
ADJUSTED NET INCOME |
|
|
|
|
|
|
|
|
|
|
||||||||||
Net Interest Income - Reported |
(a) |
$ |
113,607 |
|
|
$ |
127,922 |
|
|
$ |
141,787 |
|
|
$ |
147,274 |
|
|
$ |
137,999 |
|
Provision Expense - Reported |
(b) |
|
220 |
|
|
|
90 |
|
|
|
2,833 |
|
|
|
3,100 |
|
|
|
— |
|
Noninterest Income - Reported |
(c) |
|
14,095 |
|
|
|
12,754 |
|
|
|
11,227 |
|
|
|
13,477 |
|
|
|
13,877 |
|
Loss on sale of loans |
|
|
7 |
|
|
|
— |
|
|
|
343 |
|
|
|
— |
|
|
|
17 |
|
(Gain) loss on sale and disposal of premises and equipment |
|
|
(354 |
) |
|
|
(47 |
) |
|
|
184 |
|
|
|
101 |
|
|
|
46 |
|
Recoveries on loans charged off prior to acquisition |
|
|
(13 |
) |
|
|
(117 |
) |
|
|
(36 |
) |
|
|
(60 |
) |
|
|
(45 |
) |
Adjusted Noninterest Income |
(d) |
|
13,735 |
|
|
|
12,590 |
|
|
|
11,718 |
|
|
|
13,518 |
|
|
|
13,895 |
|
Noninterest Expense - Reported |
(e) |
|
85,705 |
|
|
|
189,380 |
|
|
|
98,774 |
|
|
|
91,733 |
|
|
|
85,925 |
|
Litigation settlement |
|
|
— |
|
|
|
(102,500 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Separation expense (1) |
|
|
— |
|
|
|
— |
|
|
|
(7,131 |
) |
|
|
(2,809 |
) |
|
|
(1,106 |
) |
Economic development employee incentive grant |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,000 |
|
|
|
— |
|
OREO impairment |
|
|
(1,000 |
) |
|
|
(1,200 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Impairment of assets |
|
|
(153 |
) |
|
|
(802 |
) |
|
|
(3,286 |
) |
|
|
(1,156 |
) |
|
|
— |
|
Acquisition expense (2) |
|
|
(27 |
) |
|
|
(26 |
) |
|
|
(40 |
) |
|
|
(65 |
) |
|
|
(65 |
) |
Adjusted Noninterest Expense |
(f) |
|
84,525 |
|
|
|
84,852 |
|
|
|
88,317 |
|
|
|
88,703 |
|
|
|
84,754 |
|
Income Tax Expense (Benefit) - Reported |
(g) |
|
8,700 |
|
|
|
(11,284 |
) |
|
|
10,653 |
|
|
|
13,481 |
|
|
|
13,591 |
|
Net Income (Loss) - Reported |
(a) - (b) + (c) - (e) - (g) = (h) |
|
33,077 |
|
|
|
(37,510 |
) |
|
|
40,754 |
|
|
|
52,437 |
|
|
|
52,360 |
|
Adjusted Net Income (3) |
(a) - (b) + (d) - (f) = (i) |
$ |
33,726 |
|
|
$ |
44,083 |
|
|
$ |
49,433 |
|
|
$ |
54,880 |
|
|
$ |
53,304 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
ADJUSTED PROFITABILITY (4) |
|
|
|
|
|
|
|
|
|
|
||||||||||
Total Average Assets |
(j) |
$ |
18,652,450 |
|
|
$ |
18,228,521 |
|
|
$ |
17,994,131 |
|
|
$ |
17,893,072 |
|
|
$ |
17,715,989 |
|
Total Average Stockholders' Equity |
(k) |
|
2,360,226 |
|
|
|
2,380,421 |
|
|
|
2,359,637 |
|
|
|
2,401,544 |
|
|
|
2,435,117 |
|
Total Average Tangible Stockholders' Equity (5) |
(l) |
|
1,308,368 |
|
|
|
1,325,475 |
|
|
|
1,301,558 |
|
|
|
1,340,363 |
|
|
|
1,370,825 |
|
Reported Return on Average Assets |
(h) / (j) |
|
0.71 |
% |
|
|
(0.83 |
)% |
|
|
0.90 |
% |
|
|
1.16 |
% |
|
|
1.19 |
% |
Reported Return on Average Equity |
(h) / (k) |
|
5.62 |
|
|
|
(6.39 |
) |
|
|
6.85 |
|
|
|
8.66 |
|
|
|
8.62 |
|
Reported Return on Average Tangible Equity |
(h) / (l) |
|
10.14 |
|
|
|
(11.48 |
) |
|
|
12.42 |
|
|
|
15.52 |
|
|
|
15.32 |
|
Adjusted Return on Average Assets (6) |
(i) / (j) |
|
0.73 |
|
|
|
0.98 |
|
|
|
1.09 |
|
|
|
1.22 |
|
|
|
1.21 |
|
Adjusted Return on Average Equity (6) |
(i) / (k) |
|
5.73 |
|
|
|
7.51 |
|
|
|
8.31 |
|
|
|
9.07 |
|
|
|
8.78 |
|
Adjusted Return on Tangible Equity (6) |
(i) / (l) |
|
10.34 |
|
|
|
13.49 |
|
|
|
15.07 |
|
|
|
16.24 |
|
|
|
15.60 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
EFFICIENCY RATIO |
|
|
|
|
|
|
|
|
|
|
||||||||||
Amortization of other intangible assets |
(m) |
$ |
3,111 |
|
|
$ |
3,111 |
|
|
$ |
3,111 |
|
|
$ |
3,117 |
|
|
$ |
3,118 |
|
Reported Efficiency Ratio |
(e - m) / (a + c) |
|
64.68 |
% |
|
|
132.41 |
% |
|
|
62.52 |
% |
|
|
55.13 |
% |
|
|
54.52 |
% |
Adjusted Efficiency Ratio |
(f - m) / (a + d) |
|
63.93 |
|
|
|
58.17 |
|
|
|
55.51 |
|
|
|
53.23 |
|
|
|
53.75 |
|
| _________________ |
(1) Separation expenses include severance and accelerated vesting expense for stock awards related to the separation of certain employees. The quarter ended December 31, 2022 reflects a reduction in workforce due to the restructuring of certain departments and business lines. The quarters ended September 30, 2022 and June 30, 2022 reflect payments made due to the separation of executive officers, while the quarter ended September 30, 2022 also includes |
(2) Acquisition expenses includes compensation related expenses for equity awards granted at acquisition. |
(3) Assumes an adjusted effective tax rate of |
(4) Quarterly metrics are annualized. |
(5) Excludes average balance of goodwill and net other intangible assets. |
(6) Calculated using adjusted net income. |
Independent Bank Group, Inc. and Subsidiaries |
|||||||||||||||||||
Reconciliation of Non-GAAP Financial Measures |
|||||||||||||||||||
As of June 30, 2023, March 31, 2023, December 31, 2022, September 30, 2022 and June 30, 2022 |
|||||||||||||||||||
(Dollars in thousands, except per share information) |
|||||||||||||||||||
(Unaudited) |
|||||||||||||||||||
|
|||||||||||||||||||
Tangible Book Value & Tangible Common Equity To Tangible Assets Ratio |
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
As of the Quarter Ended |
||||||||||||||||||
|
June 30, 2023 |
|
March 31, 2023 |
|
December 31, 2022 |
|
September 30, 2022 |
|
June 30, 2022 |
||||||||||
Tangible Common Equity |
|
|
|
|
|
|
|
|
|
||||||||||
Total common stockholders' equity |
$ |
2,353,042 |
|
|
$ |
2,350,857 |
|
|
$ |
2,385,383 |
|
|
$ |
2,354,340 |
|
|
$ |
2,364,335 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
||||||||||
Goodwill |
|
(994,021 |
) |
|
|
(994,021 |
) |
|
|
(994,021 |
) |
|
|
(994,021 |
) |
|
|
(994,021 |
) |
Other intangible assets, net |
|
(56,777 |
) |
|
|
(59,888 |
) |
|
|
(62,999 |
) |
|
|
(66,110 |
) |
|
|
(69,227 |
) |
Tangible common equity |
$ |
1,302,244 |
|
|
$ |
1,296,948 |
|
|
$ |
1,328,363 |
|
|
$ |
1,294,209 |
|
|
$ |
1,301,087 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Tangible Assets |
|
|
|
|
|
|
|
|
|
||||||||||
Total assets |
$ |
18,719,802 |
|
|
$ |
18,798,354 |
|
|
$ |
18,258,414 |
|
|
$ |
17,944,493 |
|
|
$ |
18,107,093 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
||||||||||
Goodwill |
|
(994,021 |
) |
|
|
(994,021 |
) |
|
|
(994,021 |
) |
|
|
(994,021 |
) |
|
|
(994,021 |
) |
Other intangible assets, net |
|
(56,777 |
) |
|
|
(59,888 |
) |
|
|
(62,999 |
) |
|
|
(66,110 |
) |
|
|
(69,227 |
) |
Tangible assets |
$ |
17,669,004 |
|
|
$ |
17,744,445 |
|
|
$ |
17,201,394 |
|
|
$ |
16,884,362 |
|
|
$ |
17,043,845 |
|
Common shares outstanding |
|
41,279,460 |
|
|
|
41,281,904 |
|
|
|
41,190,677 |
|
|
|
41,165,006 |
|
|
|
41,156,261 |
|
Tangible common equity to tangible assets |
|
7.37 |
% |
|
|
7.31 |
% |
|
|
7.72 |
% |
|
|
7.67 |
% |
|
|
7.63 |
% |
Book value per common share |
$ |
57.00 |
|
|
$ |
56.95 |
|
|
$ |
57.91 |
|
|
$ |
57.19 |
|
|
$ |
57.45 |
|
Tangible book value per common share |
|
31.55 |
|
|
|
31.42 |
|
|
|
32.25 |
|
|
|
31.44 |
|
|
|
31.61 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20230724869507/en/
Analysts/Investors:
Paul Langdale
Executive Vice President, Chief Financial Officer
(972) 562-9004
Paul.Langdale@ifinancial.com
Media:
Wendi Costlow
Executive Vice President, Chief Marketing Officer
(972) 562-9004
Wendi.Costlow@ifinancial.com
Source: Independent Bank Group, Inc.
